Dow snaps profit streak amid Fed minutes, profit

  • US stocks retreated on Wednesday, with the Dow Jones Industrial Average breaking its five-day gains streak.
  • Minutes from the Federal Reserve meeting in July indicated that policymakers see the pace of future rate hikes slowing.
  • Earlier in the trading session, Target reported second quarter results that fell short of forecasts.

US stocks retreated on Wednesday, with the Dow Jones Industrial Average breaking its five-day gains streak as investors weighed the central bank’s comments and retail gains.

Minutes from the Federal Reserve meeting in July indicated that policymakers see the pace of future rate hikes slowing.

“Fed Chair Jerome Powell famously said after the last FOMC meeting that the Fed would remain ‘data dependent’ going forward,” Louis Navellier, chairman and founder of Navellier & Associates, said in a note. “Maybe they’ll raise the rates just one more time on September 21 and then they’ll be done.”

Meanwhile, Target stock fell 2.7% as the retail giant missed earnings forecasts due to large-scale write-downs needed to move excess inventory.

Here’s where the US indices stood when the market closed at 4:30 PM on Wednesday:

Economist Nouriel Roubini told Bloomberg TV that investors hoping for a strong Fed pivot toward easing are “mad” as rising prices outpace central bank action.

And economist Henry Kaufman echoed similar sentiments, telling the Financial Times that Fed Chair Jerome Powell must go further and “shock the market” to tame inflation.

Elsewhere, Russia expects gas export prices to rise 140% from 2021 levels as the Kremlin restricts flows to Europe via the Nord Stream pipeline. Prices have soared since Russia invaded Ukraine in February.

Crude oil extended gains with West Texas Intermediate climbing 1.12% to $87.48. International benchmark Brent oil was 0.70% higher at $92.99.

Gold fell 0.49% to $1,766.70 an ounce. The yield on 10-year government bonds rose by 6.9 basis points to 2.893%.

Bitcoin lost 0.98% to $23,325.06.

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